Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.

Shashwat dev ppb presentation loan policy

1.
Long Term Loan Policy
Shashwat Dev
873
BBA-LLB Honours

2.
OBJECTIVE
1. To give a brief introduction about the
SARASWAT Cooperative Bank Ltd.
2. To identify the different types of long term
loans policies of SARASWAT Cooperative Bank
Ltd.
3. To analyse and evalute the long term policies of
SARASWAT Cooperative Bank Ltd.

4.
• Saraswat Bank is an urban co-operative banking
institution based in Maharashtra, India and operating
as a co-operative bank since 1918. In 1988, it was
conferred with scheduled status by the Reserve Bank of
India. It has 265 branches nationwide.
• In 1988, it was conferred with scheduled status by
the Reserve Bank of India. It has 265 branches
nationwide.
• The bank has observed good growth during the 2000s
with its total business growing from 40 billion rupees in
2000 to 230 billion rupees in 2010 (approx. 5 billion
US$).

5.
• It was registered on 14th september 1918 initially
as a cooperative credit society and later in the
year 1933 was converted into a full fledged
cooperative bank.
• The total business of the bank on 31.03.2013
stood at Rs 36,167.75 crore and net profit after tax
was at 112.09 crore and CRAR was at 11.15.
• The Bank had a zero percent net NPA level which
has been maintained over a period of time.

6.
Why Long Term Loan policy?
• Loan underwriting guidelines, and the written
documentation setting forth these standards,
as determined by a bank's senior loan
committee.
• A bank's loan policy also establishes minimum
credit standards in booking new loans, policies
and procedures in treatment of past-due and
delinquent loans, and more generally, the type
of customer a bank wants as a borrower.

7.
TYPES OF LOANS
1. Secured Loans: A secured loan is a loan in
which the borrower pledges some asset as a
collateral. Ex: Housing Loans
2. Unsecured Loans: Unsecured loans are loans
that are not secured against the borrower asset.

10.
Corporate Loans
• Rental Loan
• Maximum Amount of Loan : Rs. 25.00 lacs
or
65 % of the total net rent (i.e. rent after taxes such as
property tax, TDS) to be received whichever is lower.
Repayment Period : 5 years maximum or till the remaining
period of the lease – which is earlier.
Repayment will be from the rent received.
Security : Equitable mortgage of the property given on rent or
any other acceptable property of value of 35% more than the
loan amount.
Guarantors : In case the borrower is a partnership firm or a
limited company, personal guarantee of the partners/directors .

11.
Property Loan
• Firms / companies having net annual taxable income of Rs. 1.50 Lakhs per annum
and in operation for last 3 years making cash profit for last 3 years.
• Limit of Loan
• Minimum - Rs.2 lakhs
• Maximum - Rs. 50 Lakhs
• Basis of Advance
60% of agreement cost (If the property is less than 3 years old.). In other cases, 60%
of value as per valuation report.
Security
Equitable Mortgage of Residential, commercial or industrial property.
Guarantor:
Need not be obtained however in case of firms, companies, guarantee of partners,
directors to be obtained.
Share Holding
2.5% of the loan amount, Maximum 2500 shares, Guarantors as nominal members.

12.
Term Loan
• Saraswat Bank provides term finance/term loans
for business expansion, up-gradation of existing
facilities etc to ease the pressures on margins of
the company. The Bank is providing structured
term loans to meet your short term as well as
long term funding requirements . We offer
specific solution so as to match repayment with
your cash flows to repay the debt
thereby enhancing your profitability.